10 Questions to Ask Before You Remortgage
Knowing whether a remortgage is the right move for you can be a difficult thing to determine. Sometimes, remortgaging is not going to be the best move, while other times it is going to be the only thing that saves your house during a tough economic patch. Answer these 10 questions honestly to find out whether remortgaging is the right move for you now.
1. What's my credit score? By knowing your credit score, you are going to be able to estimate what type of interest rate you are going to be able to get on your remortgage. If your credit is not the best it could be, you may want to work on repairing it before you remortgage.
2. How much in interest are you paying now? If the current interest rate is only a half of a percent or a percent lower, you might want to wait to refinance until you can save more money. Make sure that this process is worth it and that you are saving the most money possible. By waiting, you are going to be able to see if you can remortgage at the lowest interest rates possible.
3. What's the interest rate now? Before taking the plunge and remortgaging, you are going to want to see exactly how much money you are going to be able to save every month.
4. What are the remortgaging fees? Each bank or mortgage company has fees that are associated with remortgaging and keeping these fees in mind is going to help you decide whether to remortgage now. Before you sign your mortgage papers, be sure to look through them with a fine tooth comb to see whether or not there are any hidden fees in there.
5. How much time do you have left on your current mortgage? If you only have a couple of years left on your current mortgage, it might not be so wise to remortgage your house. You have to think about the benefit of a new interest rate and the benefit of getting your house paid off quickly. Remortgaging is usually not the quickest way to get your house paid off, even if it will save you a bit of money.
6. Are you planning on relocating? If your job is going to send you to another location soon, remortgaging is not going to be the best move right now. Just keep on paying off your mortgage and when you move, you can find a mortgage that has a better interest rate.
7. Do you love your wife? If the answer is "no" and divorce is in the cards, you might want to wait to remortgage. Remortgaging is difficult to do and is going to be expensive too, so you don't want to do it more often than necessary. Remortgaging should be done only if you have to.
8. Have you been thinking about remortgaging for very long? A lot of people see commercials on television and think, "Oh remortgaging is for me," not realizing how much work it actually is.
9. Is your schedule clear? Remortgaging is a headache and is going to eat away at your free time. If your schedule isn't clear, choose a different time to remortgage.
10. Are banks enthusiastic? If you are still unsure, go to a couple of banks and see if they are enthusiastic about all of the benefits of remortgaging for you. You will usually be able to tell whether or not remortgaging is for you and you are under no obligation to go through with it if it isn't.
Remortgaging is a huge process and knowing when to remortgage is not always that clear. By asking yourself these 10 questions, you are going to be able to tell whether now is the right time to remortgage.
1. What's my credit score? By knowing your credit score, you are going to be able to estimate what type of interest rate you are going to be able to get on your remortgage. If your credit is not the best it could be, you may want to work on repairing it before you remortgage.
2. How much in interest are you paying now? If the current interest rate is only a half of a percent or a percent lower, you might want to wait to refinance until you can save more money. Make sure that this process is worth it and that you are saving the most money possible. By waiting, you are going to be able to see if you can remortgage at the lowest interest rates possible.
3. What's the interest rate now? Before taking the plunge and remortgaging, you are going to want to see exactly how much money you are going to be able to save every month.
4. What are the remortgaging fees? Each bank or mortgage company has fees that are associated with remortgaging and keeping these fees in mind is going to help you decide whether to remortgage now. Before you sign your mortgage papers, be sure to look through them with a fine tooth comb to see whether or not there are any hidden fees in there.
5. How much time do you have left on your current mortgage? If you only have a couple of years left on your current mortgage, it might not be so wise to remortgage your house. You have to think about the benefit of a new interest rate and the benefit of getting your house paid off quickly. Remortgaging is usually not the quickest way to get your house paid off, even if it will save you a bit of money.
6. Are you planning on relocating? If your job is going to send you to another location soon, remortgaging is not going to be the best move right now. Just keep on paying off your mortgage and when you move, you can find a mortgage that has a better interest rate.
7. Do you love your wife? If the answer is "no" and divorce is in the cards, you might want to wait to remortgage. Remortgaging is difficult to do and is going to be expensive too, so you don't want to do it more often than necessary. Remortgaging should be done only if you have to.
8. Have you been thinking about remortgaging for very long? A lot of people see commercials on television and think, "Oh remortgaging is for me," not realizing how much work it actually is.
9. Is your schedule clear? Remortgaging is a headache and is going to eat away at your free time. If your schedule isn't clear, choose a different time to remortgage.
10. Are banks enthusiastic? If you are still unsure, go to a couple of banks and see if they are enthusiastic about all of the benefits of remortgaging for you. You will usually be able to tell whether or not remortgaging is for you and you are under no obligation to go through with it if it isn't.
Remortgaging is a huge process and knowing when to remortgage is not always that clear. By asking yourself these 10 questions, you are going to be able to tell whether now is the right time to remortgage.
posted by Credit Counseling at
1:09 AM
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